Published: May 10, 2012
Qatari and Egyptian institutions form joint venture.
Qatari investment bank QInvest is forming a joint venture with Egypt’s EFG Hermes.
The deal will see QInvest take a 60% stake in a new company holding EFG Hermes’ brokerage, research, asset management, investment banking and infrastructure fund businesses.
The companies claim the new venture will offer an enhanced product range to QInvest’s existing client base in Qatar and allow the combined business to expand in sub-Saharan Africa and Southeast Asia.
As part of the deal, QInvest will inject US$250mn into EFG Hermes Qatar. EFG Hermes will have the right to sell its 40% shareholding in the joint venture to QInvest at any time during the period between 12 to 36 months from signing of the transaction for about US$165mn.
EFG Hermes has been advised by its own investment banking team, JP Morgan and Freshfields. QInvest was advised by its in-house team, Goldman Sachs and Hogan Lovells.